Modern Mint 1oz. gold now over $3k
Goldbully
Posts: 17,360 ✭✭✭✭✭
1oz. AGE proof...$3,100
1oz. AGE Unc...$3,070
1oz. Buffalo proof...$3,140
Should be headed even higher this week.
I 'm seeing sales slowing down quite a bit.....how do you see it?
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Comments
Just be patient, it will be in your LCS next year for much closer to melt. Besides it’s just bullion so who cares what year is stamped on it. I see no reason to try to collect a complete set of bullion coins, but that’s just me. Collect what you like.
2006, Proof Buffalos.....$805........
Not to detract from the bullion collectors... but pre-1933 gold is trading for not much over melt.
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I guess I should have titled the thread Collector Mint 1oz. Gold over $3k.
I rememice the $995 four coin proof gold sets when I used to buy them yearly from the USM. Then filled my collection around the year 2000 from FJ Volmer, who specialized in those for $750 a set. He stocked lots of cool coins and really nice firearms. Real nice dealer to deal and chat with.
Back in the late 1980s, I put together a set with the ASE and the AGE coins in a Capital Plastics holder for $650. I wanted to do that again with the new reverse designs, but the gold price scares me. Has the dollar really lost that much mojoe for the long term? With almost no premium over melt that set will cost almost $4,400. You can't touch it for that now. If gold drops to $1,500, I'd be left holding the bag.
I guess I won't be worrying about the "Eagle Head" reverse type gold coins any time soon.
+1
I see it the same as you! The problem with the Mint is that no one there reads the memo.
If you read @DeplorableDan's related thread, premiums on classic generic gold converge to $0 as spot rises. It does so every time as the intrinsic value overwhelms whatever the premium would otherwise be.
The Mint, OTOH, employs a static pricing grid that does not take this into account. As a result, they just price themselves out of the market as spot rises.
Yes, people love the coins, and some are so price insensitive that they will buy them no matter what. For most people though, an obnoxiously high premium that does not shrink as spot rises is simply unjustifiable. As a result, sales have nowhere to go but down. And they seem fine with it, so it is what it is.
I just checked the grid, and apparently did not pay attention when they last revised it. The premium at $500 gold is a whopping $900.
That's just nuts, and is the baseline. It gets lost at $1800 gold, where it represents 50%, but it's crazy at $500, where it represents almost 200%.
The prices were never that out of line when gold was last at $500, and sales would undoubtedly also collapse if gold ever got down there again. $1500-1800 spot is probably the sweet spot for Mint sales at grid pricing.
Above and below that, classic generic slabbed gold is just a much better value. It could probably be argued that it's a better value at any price, but especially so when modern products are sold at a multiple of spot, or when they go for $900/oz. above melt while graded generics sell for around melt as spot rises above $2,000.
‘’Above and below that, classic generic slabbed gold is just a much better value. It could probably be argued that it's a better value at any price, but especially so when modern products are sold at a multiple of spot, or when they go for $900/oz. above melt while graded generics sell for around melt as spot rises above $2,000.’’
NJCoin- You left out one other collectible class. The Mint’s “last year’s model” that falls to roughly near spot as the premium disappears. Ex: proof gold from 2021 or 2022 or earlier… now bid at around $100-$150 over spot! Or, $5 Gold Commems from prior years with super low mintages that fetch the same tiny premium to spot. Excluding a “once in a century” coin like the v75 Gold Privy, or a similar amazing deal that comes around once in a decade or so, I am in 100% agreement - why chase this year’s model at $900 over spot when I can buy last year’s model at close to melt!!
Just my 2 cents.
Wondercoin
Same
I've got about a dozen of those 4 coins sets left from 1988-1992, they fund my actual collecting.
It's so great to have such astute analysis on modern Mint issues from @NJCoin and @wondercoin.
Grateful for their commentary on this forum.
It needed to be said.
Thank you.